[8] 2002 e-business-strategies-for-virtual-organizations

Globalization and e-business strategies for SMEs
6.11 The consultant engagement process
It is estimated that by 2005 the global Internet consultancy
market will be worth $US50 billion (Evamy 1999). In the UK
alone, website design consultants’ growth in earnings have
increased from 76% to 133% involving millions of dollars in
consultancy fees.
The success or failure of an SME engaging a website design
consultant involves a number of issues. First, it may be the
SME’s first attempt at engaging an external consultant and the
SME may lack the relevant knowledge and experience required
for successful engagement. Second, website design consultants
are often SMEs themselves, and in the current climate of
accelerating growth in the electronic commerce area, website
design consultants are often business start-ups and consequently
may lack experience in negotiating successful contracts.
Finally, consultants tend to view SMEs as one-off jobs and may
consequently lack commitment to the project:
small firms were viewed as one-shot opportunities, offering no potential
for establishing a long-term relationship. Consultants . . . would sell the
small firms software and hardware, put together a network, and move on
to the next company. (McCollum 1999, p. 46)
Prior to consultant engagement an SME should have a clearly
defined Internet strategy but should also understand the need to
align business processes with website strategy through the
creation of a new e-business model. They should further identify
the amount of time and effort the SME contributes to the project
and the critical importance of maintaining a clear understanding
of the role of the SME and the role of the consultant throughout
all stages of the project. This means that the SME must review all
the following steps:
� Identify and define Internet strategy.
� Align current business processes with new e-business model.
� Assess internal capabilities.
� Identify and address specific organizational roles.
� Accommodate evolving project objectives.
If the review of capabilities points to the need for an external
consultant then the following steps must also be considered:
� evaluate internal resources available for the project;
� canvass the market for prospective consulting firms;
� develop a request for proposal (RFP);
� check references;
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